Limited company landlords accounted for a record 43% of mortgaged buy-to-let house purchases in 2025, up from 35% in 2024 and just 7.5% in 2018, analysis by Paragon Bank reveals.

The figures show a continued structural shift in the sector following the 2017 changes to mortgage interest tax relief which saw landlords taxed on gross rental income rather than profit.

Limited companies also made up 11.5% of completed buy-to-let remortgages in 2025, up from 10% a year earlier and 1.3% in 2018.

Separate data from Companies House shows 49,029 companies were incorporated in 2025 under the SIC code for buying and selling own real estate, up from 45,775 in 2024. In total, 274,315 such businesses are now active – more than the number operating in the hospitality sector.

STRUCTURAL SHIFT

Louisa Sedgwick (main picture), Paragon Bank managing director of mortgages, said: “The continued rise in limited company buy-to-let activity reflects the structural shift we’ve seen in the market since the 2017 tax changes.

“As landlords have adjusted to being taxed on gross rental income, incorporation has become an increasingly attractive and often necessary route to maintain profitability.

“Limited company structures can potentially not only offer more efficient tax treatment but also provide greater flexibility for portfolio growth and long-term planning.

“The record share of purchases and remortgages completed through limited companies in 2025 underlines how deeply this trend is now embedded in the sector, and it is one we anticipate will continue.”

TRACK RECORD

Paragon’s survey of more than 500 landlords found 29% now hold all their properties in a limited company, while a further 36% split ownership between corporate entities and personal names – meaning 65% have created at least one Special Purpose Vehicle.

Among landlords aged 25–34, 57% of properties are held in limited companies, with 43% owned through a mix of structures. In the 35–44 age group, 46% are held via limited companies, with 39% mixed.

Jason Wilde, Paragon Bank Mortgages head of sales and retention, said: “Paragon has a long history of supporting limited company landlords and the proportion of incorporated completions on our own book are significantly higher than the broader market.

“Landlords looking for a lender for limited company transactions need to consider that organisation’s track record in this segment of the market.”